Title: Announcement regarding issuance of Disciplinary Board Resolution No. (48/2024 Disciplinary Board) (48/2023 Authority) and imposition of a fine against: Abdul Rahman Mubarak Hassan Al-Qaoud in his capacity as an External Auditor of a Company for violating the rules of Securities Activities and Registered Persons

Announcement regarding issuance of Disciplinary Board Resolution No. (48/2024 Disciplinary Board) (48/2023 Authority) and imposition of a fine against: Abdul Rahman Mubarak Hassan Al-Qaoud in his capacity as an External Auditor of a Company for violating the rules of Securities Activities and Registered Persons

For the following reasons:
Violating the provision of Article (3-4-5) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments by failing to adhere to the following:

1- Failure to meet the requirements of paragraph 15 of International Accounting Standard "IAS 28" (Investment in Subsidiary Facilities and Joint Ventures).

2- Failure to meet the requirements of Auditing Standard (570) regarding continuity, and paragraph (7a) - item (c) of Reviewing Standard (706) regarding going concern paragraphs and other paragraphs.

3- Failure to ensure the Company meeting the requirements of paragraphs (25) and (26) of International Accounting Standard (IAS1), as no observations were made in the auditor's report issued on the financial statements for the financial period ending on 31/3/2024 for the Company.

4- Failure to make any comments in the auditor's report issued on the Company's assembling of the periodical concentrated consolidated information for the subsidiary Company according to financial information prepared by management for the period ending on 31/3/2024, which does not comply with the requirements of International Auditing Standard No. 2410.

The Resolution included the infliction of the following penalty: -

“Levying a fine against Abdul Rahman Mubarak Hassan Al-Qaoud in his capacity as a Company’s External Auditor in the amount of KWD 2000 (two thousand Dinars) for the first three items due to correlations, and the amount of KWD 1000 (one thousand Dinars) for the fourth item of the attributed violation”. 

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these rules in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.